Memphis: A Tourist’s Taxing Experience
When it comes to hotel stays, Memphis has earned quite the reputation for its sticker shock. Travelers checking out of their accommodations often find themselves facing a bill much higher than they anticipated. The city boasts some of the highest combined sales and hotel-motel taxes in the country, and it seems to have tourists scratching their heads and reaching for their wallets.
Just How High Are These Taxes?
Let’s break down the numbers. If youโre looking at a room at the Westin Hotel for December 17, the nightly rate looks appealing at $215. But wait until you get to checkoutโyouโll fork over a whopping $256.24! This isnโt an isolated incident. The Hu Hotel advertises a $139 room rate, but the final bill ends up being $170.94. And donโt get us started on the downtown Sheraton Hotel, where a $126 room morphs into $157.30 after taxes and fees. With an eye-popping 18.25% tax rate adding up from various state and local taxes, itโs no wonder guests feel overwhelmed.
Whatโs behind these astronomical prices? Well, in addition to the room rate, travelers find a 7% state sales tax, a 2.75% local option sales tax, a 3.5% hotel-motel tax, and a 5% Shelby County hotel-motel tax all packing on those extra dollars. Adding to the absurdity, thereโs even a $2 per night Tourism Improvement District fee, first introduced in 2016, to help fund city marketing efforts. This hefty tax burden places Memphis among the top contenders for the highest lodging taxes in the U.S., and travelers are taking notice.
The Resort Fee Runaround
But waitโthereโs more! The Peabody Hotel and Bass Pro Shops’ Big Cypress Lodge on the riverfront both add a resort fee to their already inflated prices. The Peabody charges an additional $13.95 per night, while Big Cypress Lodge takes it even further with a staggering $40 fee per night. So, what does all this money get you? Well, the Peabodyโs resort fee rolls in perks like Wi-Fi, morning coffee, and access to the gym and pool. But many guests are left wondering why these should come at an extra cost in the first place. After all, isnโt Wi-Fi now considered a basic hotel amenity?
At Big Cypress Lodge, guests can expect similar services such as gym access, daily parking, and even towel service, but at a jaw-dropping mark-up. If you thought you could snag a cozy $229 room there, think again. When all is said and done, youโre forking over a total of $316.70! That translates to a downright shocking 38% increase in your nightly rate. Talk about some serious price gouging!
Memphis in the National Tax Spotlight
According to the recent 2024 HVS Lodging Tax Report, Memphis ranks as the fifth highest city for lodging taxes in the U.S. Thankfully, New York and Washington, D.C., arenโt too far behind. Itโs crucial to note that this ranking was calculated without including a 0.5% tax that, when added, bumps Memphis right up to the fourth spot.
Only cities like Omaha (20.5%), Cincinnati (19.3%), and St. Louis (18.93%) surpass Memphis when it comes to taxing unsuspecting guests. For reference, Los Angeles is at 15.5%, Miami is at 14%, and San Francisco is at 16.75%. Itโs worth noting that these taxes started back in 1988, when state law permitted cities to implement hotel-motel taxes.
Memphis saw similar growth patterns over the years, shifting from a sleepy regional tourism hub to a more bustling economy, largely thanks to the control of its hotel-motel taxes and the revenue generated from them. In a time when local authorities are facing budget cuts and funding challenges, itโs no wonder travelers are feeling the pinch as they pack their bags to experience music, BBQ, and Southern hospitality in Memphis.
A Double-Edged Sword
So, what does all this mean for our lovely Memphis? On one hand, these taxes have helped fund numerous industry initiativesโimprovements to venues, festivals, and community events. But on the other hand, they are leading to an unfortunate reality for tourists who might have left with a smoky flavor in their mouth for different reasons.
As they explore the soul of Memphis, it seems that visitors might want to pack a bit more cash for those unexpected fees, as well as prepare themselves for the reality of checking out with a hotel bill that might send shockwaves through their wallets. But for the savvy traveler, knowledge is power; so maybe plan your stay to avoid the worst offenders, or simply brace yourself for the rollercoaster ride of tax hikes and fees that all come with an unforgettable trip to the Bluff City!
Author: STAFF HERE MEMPHIS WRITER
The MEMPHIS STAFF WRITER represents the experienced team at HEREMemphis.com, your go-to source for actionable local news and information in Memphis, Shelby County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the areaโwith deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Beale Street Music Festival, Elvis Week, and Memphis in May International Festival. Our coverage extends to key organizations like the Greater Memphis Chamber and the Memphis Convention & Visitors Bureau, plus leading businesses in logistics, healthcare, and music that power the local economy such as FedEx, St. Jude Children's Research Hospital, and AutoZone. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
